Cash flow generation remains volatile, with free cash flow margins plummeting to -51.8% in 2026Q2, highlighting a breakdown in operational cash conversion.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 |
|---|
| Cash from Operations | -28.39M | 4.72M | 4.32M | 27.8M | 18.5M | 40.08M | 38.84M | 45.14M | 37.38M | 47.2M | 21.05M | 32.04M | 13.51M | 13.29M | 20.39M | 30.11M | 27.69M | 14.97M | 19.38M | 16.56M | 10.28M | 8.35M | 1.11M | 970.3K | 476.02K | -1.05M | -317.24K |
| Operating CF Margin % | -15.86% | 2.08% | 1.57% | 10.84% | 6.77% | 13.2% | 13.67% | 15.93% | 13.65% | 18.94% | 8.97% | 13.97% | 5.79% | 5.83% | 8.56% | 13% | 11.62% | 6.82% | 10.29% | 10.21% | 7.47% | 7.7% | 1.18% | 1.76% | 1.49% | -10.46% | -2.16% |
| Operating CF Growth % | -701.82% | 9.29% | -84.47% | 50.3% | -53.84% | 3.17% | -13.94% | 20.76% | -20.81% | 124.22% | -34.3% | 137.25% | 1.63% | -34.82% | -32.27% | 8.74% | 84.99% | -22.78% | 17% | 61.17% | 23.1% | 655.14% | 13.94% | 103.83% | 145.48% | -229.9% | - |
| Net Income | -57.29M | -6.27M | -7.46M | 233K | 21.1M | 30.6M | 25.85M | 37.74M | 37.28M | 23.82M | 20.57M | 17.45M | 17.97M | 17.16M | 16.66M | 20.87M | 26M | 22.98M | 20.02M | 14.44M | 12.06M | 8.01M | 5.81M | 3.26M | 825.41K | -2.83M | -1.79M |
| Depreciation & Amortization | 9.39M | 7.04M | 7.06M | 3.55M | 2.74M | 2.43M | 2.26M | 2.23M | 2.13M | 1.37M | 770K | 660K | 867K | 1.09M | 1.41M | 1.38M | 1.32M | 814.54K | 589.99K | 530.44K | 544.53K | 573.82K | 550.39K | 367.67K | 236.72K | -88.29K | -169.98K |
| Stock-Based Compensation | 1.36M | -6.59M | 6.87M | 6.62M | 4.55M | 3.31M | 2.82M | 3.1M | 2.58M | 1.94M | 1.61M | 1.48M | 1.48M | 1.94M | 2.25M | 2.17M | 1.59M | 1.46M | 1.68M | 1.25K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -88K | 5.25M | 292K | -1.56M | -345K | 311K | -151K | 125K | -92K | 1.95M | -23K | 157K | -183K | -76K | -56K | 348K | -305.33K | 497.29K | -327.31K | -100.54K | -211.16K | -1.49K | 0 | -581.36K | 0 | 0 | 0 |
| Other Non-Cash Items | 26.62M | 1.56M | 324K | 5.05M | 165K | 130K | 191K | 85K | 112K | 421K | 260K | 1.81M | 95K | 56K | 47K | 48K | 17.55K | 82.55K | 40.82K | 1.13M | 342.93K | 934.84K | 596.3K | 171.61K | 321.19K | -19.01K | 610.5K |
| Working Capital Changes | -8.39M | 3.72M | -2.76M | 13.92M | -9.71M | 3.3M | 7.87M | 1.87M | -4.63M | 17.71M | -2.13M | 10.48M | -6.72M | -6.89M | 84K | 5.29M | -944.55K | -10.87M | -2.62M | 564.49K | -2.46M | -1.17M | -5.85M | -2.25M | -907.3K | 1.89M | 1.04M |
| Change in Receivables | 445K | 601K | -1.74M | -41K | 509K | 1.13M | -1.49M | -335K | -596K | -505K | -53K | -264K | -417K | 77K | 366K | 64K | 766.48K | -1.38M | -246.56K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 471K | 12.35M | -6.42M | 13.43M | 1.97M | -16.54M | 3.49M | 1.97M | -3.11M | 5.36M | -518K | 10.66M | -4.13M | -5.38M | -1.08M | 3.92M | -2.29M | -8.87M | -1.82M | -1.09M | -3.82M | -475 | -6.91M | -1.96M | -1.68M | 1.12M | -175.98K |
| Change in Payables | -2.66M | -13.46M | 6.1M | -2.29M | -12.05M | 19.89M | 3.38M | 1M | 53K | 10.22M | -149K | -616K | -686K | -165K | 297K | 1.96M | 312.77K | -313.44K | -1.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -4.62M | -5.11M | -40.67M | -10.26M | -1.75M | -2.43M | -2.31M | -620K | -703K | -10.6M | -4.49M | -986K | -129K | -5.82M | 11.64M | -10.82M | 1.1M | 11.18M | 9.1M | -17.3M | -757.58K | -171.76K | -741.74K | -1.09M | 1.46M | 69.54K | -918.18K |
| Capital Expenditures | -4.62M | -5.11M | -4.51M | -5.26M | -1.75M | -2.43M | -2.31M | -620K | -703K | -10.6M | -20.13M | -918K | -45K | -626K | -705K | -677K | -1.05M | -3.69M | -502.71K | -1.03M | -758.18K | -171.76K | -741.74K | -744.6K | -555.64K | -241.89K | -552.1K |
| CapEx % of Revenue | 2.58% | 2.25% | 1.65% | 2.05% | 0.64% | 0.8% | 0.81% | 0.22% | 0.26% | 4.26% | 8.58% | 0.4% | 0.02% | 0.27% | 0.3% | 0.29% | 0.44% | 1.68% | 0.27% | 0.63% | 0.55% | 0.16% | 0.79% | 1.35% | 1.74% | 2.42% | 3.76% |
| Acquisitions | 0 | 0 | -36.16M | -5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 15.64M | -68K | -84K | -5.19M | 12.34M | -10.15M | 2.15M | 2K | 9.61M | 400 | 600 | 0 | 0 | -350K | 2.02M | 311.43K | -366.08K |
| Cash from Financing | -299K | -181K | -12.44M | -24.54M | -24.38M | -22.69M | -33.3M | -21.93M | -17.47M | -15.51M | -14.54M | -13.75M | -13.23M | -36.12M | -34.89M | -22.77M | -5.77M | -16.29M | -8.53M | 684.8K | 1.02M | 1.22M | 1.93M | 371.18K | -1.61M | 1.07M | 861.52K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -68.44K | -68.44K | -209.66K | -1.61M | -879.25K | 604.52K |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | -11.5M | 0 | 0 | 0 | 0 | 0 | 0 | -3.87M | -23.68M | -12.25M | 0 | -18.45M | -11.6M | 442.08K | 1.02M | 1.29M | 2M | 580.84K | 0 | 1.95M | 257K |
| Dividends Paid | -21K | -181K | -12.44M | -24.54M | -24.38M | -22.69M | -21.8M | -21.93M | -17.47M | -15.51M | -14.68M | -13.81M | -13.33M | -31.97M | -10.96M | -10.73M | -6.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -11.5M | 0 | 0 | 0 | 0 | 0 | -3.87M | -3.87M | -23.68M | -12.25M | 0 | -18.45M | -11.6M | 0 | 0 | 0 | 0 | 0 | 0 | -1K | 0 |
| Other Financing | -278K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 142K | 58K | 99K | -284K | -240K | 208K | 1.03M | 2.16M | 3.07M | 242.72K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -33.31M | -576K | -48.79M | -6.99M | -7.64M | 14.96M | 3.23M | 22.59M | 19.21M | 21.09M | 2.03M | 17.31M | 150K | -28.65M | -2.86M | -3.48M | 23.02M | 9.86M | 19.95M | -50.44K | 10.54M | 9.4M | 2.29M | 246.88K | 328.58K | 96.85K | -373.9K |
| Free Cash Flow | -33.01M | -395K | -194K | 22.54M | 16.75M | 37.64M | 36.53M | 44.52M | 36.68M | 36.6M | 923K | 31.13M | 13.46M | 12.66M | 19.69M | 29.43M | 26.64M | 11.27M | 18.88M | 15.54M | 9.52M | 8.18M | 363.86K | 225.71K | -79.62K | -1.29M | -869.34K |
| FCF Margin % | -18.44% | -0.17% | -0.07% | 8.79% | 6.12% | 12.4% | 12.86% | 15.71% | 13.4% | 14.69% | 0.39% | 13.57% | 5.77% | 5.56% | 8.26% | 12.7% | 11.18% | 5.14% | 10.02% | 9.58% | 6.92% | 7.55% | 0.39% | 0.41% | -0.25% | -12.88% | -5.92% |
| FCF Growth % | -8256.71% | -103.61% | -100.86% | 34.62% | -55.51% | 3.04% | -17.94% | 21.38% | 0.21% | 3865.33% | -97.03% | 131.22% | 6.29% | -35.67% | -33.11% | 10.47% | 136.3% | -40.28% | 21.48% | 63.24% | 16.42% | 2147.34% | 61.21% | 383.47% | 93.82% | -48.21% | - |
| FCF per Share | -1.58 | -0.02 | -0.01 | 1.11 | 0.82 | 1.87 | 1.82 | 2.17 | 1.79 | 1.80 | 0.05 | 1.55 | 0.67 | 0.63 | 0.95 | 1.30 | 1.17 | 0.48 | 0.78 | 0.64 | 0.39 | 0.34 | 0.02 | 0.01 | -0.00 | -0.13 | -0.14 |
| FCF Conversion (FCF/Net Income) | 0.50x | -0.75x | -0.58x | 5.41x | 0.88x | 1.68x | 1.50x | 1.20x | 1.00x | 1.98x | 1.02x | 1.84x | 0.75x | 0.77x | 1.22x | 1.44x | 1.06x | 0.65x | 0.97x | 1.15x | 0.85x | 1.04x | 0.19x | 0.30x | 0.58x | 0.37x | 0.18x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 52K | 0 | 130K | 4.31M | 6.08M | 10.02M | 7.14M | 11.05M | 18.05M | 11.37M | 12.17M | 10.03M | 10.73M | 10.14M | 9.54M | 12.58M | 14.72M | 16.46M | 10.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and customer churn
As reported in quarterly financial filings, the relationship between net income and operating cash flow has become increasingly erratic, with OCF/NI ratios swinging from 3.18 in 2025Q2 to -2.27 in 2025Q1, indicating a lack of reliable cash conversion quality during this period of operational contraction.
The extreme volatility in the OCF/NI ratio suggests that reported net income is being heavily distorted by non-cash items or significant working capital swings. Investors should monitor whether this divergence reflects genuine operational friction or accounting adjustments that mask the underlying cash-generating capacity of the pharmacy business.
Based on the provided cash flow data, PETS has seen its FCF margins deteriorate significantly, plummeting to a low of -51.8% in 2026Q2, which underscores the company's inability to maintain positive cash generation as revenue declines and operating costs remain stubbornly high.
The trajectory of FCF is clearly negative, moving from intermittent positive quarters to sustained outflows. This trend suggests that the current business model is no longer self-funding, necessitating a potential reliance on existing cash reserves that are rapidly depleting.
According to recent financial statements, working capital changes have been highly inconsistent, oscillating between a $7.6M inflow in 2024Q4 and a $3.4M outflow in 2026Q3, which suggests that the company is struggling to manage its inventory and payables effectively amidst a shrinking customer base.
The erratic nature of these working capital shifts may indicate difficulty in aligning inventory procurement with actual demand. Such instability often precedes further margin pressure as the company may be forced to liquidate slow-moving inventory at unfavorable prices to preserve liquidity.
As indicated by the provided data, stock-based compensation has fluctuated wildly, reaching a negative $8.2M in 2025Q1 and a positive $7.2M in 2025Q4, which complicates the assessment of true cash-based operating performance and obscures the actual cost of talent retention.
The significant swings in SBC suggest that management's compensation structure is not consistently aligned with the company's deteriorating financial performance. Analysts should be wary of these adjustments, as they appear to artificially inflate or deflate cash flow metrics in ways that do not reflect the core business reality.
Quick answers to the most common questions about buying PETS stock.
PetMed Express, Inc. (PETS) generated $-28.4M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
PetMed Express, Inc. (PETS) reported negative free cash flow of $33.0M in 2026, indicating capital requirements exceeded cash from operations.
PetMed Express, Inc. (PETS) spent $4.6M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, PetMed Express, Inc. (PETS) returned $0.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.